Engaged Employees Could Double Net Profit – Leading Psychologist Explains Why
A leading expert in management and leadership is extolling the virtues of employee engagement, based on a number of studies that have revealed that having engaged employees positively contributes to the net worth of a business. Dr. Patricia Thompson is a respected business consultant and corporate psychologist, and she is urging all businesses to assess how engaged their employees really are – or face losing out on considerable profit.
An International Survey Research (ISR) report recently revealed that net profit margins in companies where engagement was low measured -1.38%, compared with 2.06% where employees were fully engaged with their work. A Towers Perrin study also found that just a 5% increase in employee engagement resulted in a 0.7% increase in operating margins – considerable figures for businesses in these competitive times.
Dr. Thompson, who has written a highly informative book on leadership – The Consummate Leader – and has won awards for her work in psychology says, “Businesses are finally waking up to the importance of employee engagement, and what it can do for their bottom lines. In the past, many business leaders may have believed that engagement was merely nice to have for employee retention and workplace atmosphere, but the figures linking engagement to net profit and financial gain force these businesses to sit up and take action if they want to succeed.”
Engaging employees is no easy task, especially in a world where distractions are more prevalent than ever and companies are often in the unenviable position of having to do more with less due to economic cutbacks. However, the managers that can engage and motivate their employees in the right way are increasingly showing the advantages of attending to these factors. The same Towers Perrin study found that employees at the higher end of the engagement scale had high performance behaviors – 72% believed they could positively impact customer service, and 82% believed they could have a positive effect on quality at their business. Among the employees that were not considered to be fully engaged, just 27% believed they would have any kind of positive effect on either customer service or quality.
Dr. Thompson outlines a number of effective ways to boost engagement in employees. She says, “Communication is hugely important – there needs to be clear, open, positive, and consistent communication between leaders and employees to see an increase in engagement. Organizations should also align employee goals with business objectives, and make it clear that they focus on career development and progress as a means of engaging team members. When employees feel a sense of purpose in their work and know that their employers care about them, they have an increased sense of loyalty to the business. All of these approaches can help to develop a workforce that instead of being plagued with disconnected and disengaged individuals, is filled with engaged individuals who are committed to their work.”
Published July 2014, ‘The Consummate Leader: A Holistic Guide to Inspiring Growth in Others…and in Yourself’ equips managers and senior executives with seven keys to becoming an impeccable leader. By building a research-based business case, and providing a host of exercises and examples, Dr. Thompson’s interactive book helps leaders to maximize their performance. Calling on lessons from Nelson Mandela and SpongeBob SquarePants amongst others, the book uncovers the secrets of truly outstanding leaders and the importance of focusing not just on strategy, metrics and execution but on minds, bodies and spirits to increase engagement, both on an individual and organizational level.
To find out more about The Consummate Leader or Dr. Patricia Thompson herself, visit her website: http://www.patricia-thompson.com